13 minYour Investment Soundtrack: The Companies Behind BL Equities Japan – Part 4
Finishing our portfolio soundtrack journey, tracks seven and eight explore the consumer landscape from two distinct perspectives: domestic market leadership and worldwide recognition.
These create a compelling dual opportunity - Japanese companies can either find growth niches in Japan's challenging consumer market, or leverage Japanese quality and innovation to build worldwide presence. Your portfolio companies are uniquely positioned to capitalize on both the opportunities within Japan's domestic market and the global appeal of Japanese consumer excellence.
Big in Japan
Leaders in Japan: Dominating Niches with High Market Share
When Alphaville released Big in Japan in 1984, they captured the idea of finding success in a market that might elude you elsewhere. Today, this concept resonates with Japanese consumer companies that have mastered the art of niche domination—businesses that may not be household names globally but have secured impressive market share in Japan through specialization, quality, and deep understanding of specific market segments. These firms demonstrate how focused expertise and attention to detail can create remarkable business success, even in light of challenging economics and demographics...
Sundrug plays two winning games at once. On one side, they run drugstores with pharmacies inside, selling everything from prescription medicines to beauty products. On the other, they operate discount stores where shoppers hunt for everyday bargains. This smart dual approach means Sundrug never puts all their eggs in one basket. With Japan's population getting older and needing more medications, the pharmacy side keeps growing. Meanwhile, everyone loves a good bargain, so the discount stores stay busy too. Sundrug keeps expanding with new locations and acquisitions, all while maintaining some of the best profit margins in Japanese retail.
Pan Pacific International is the king of chaos-as-a-business-model, operating the Don Quijote discount stores that are a quintessential part of Japan's shopping landscape. These stores are labyrinthine treasure troves, stacked floor-to-ceiling with surprises—places where you never know what you’ll find and often leave with things you didn’t even know you needed. What makes Don Quijote special is their unique approach combining convenience, value, and entertainment. They're open late, stuff products into creative "compression displays," and turn shopping into an experience rather than a chore. It's like a retail playground where browsing becomes genuinely fun. It's a formula that has delivered an astonishing 35 consecutive years of growth, driven by younger crowds watching their wallets and a steady flow of tourists seeking a true slice of Japanese culture.
💡 Did you know that Don Quijote stores were named after the hero of Cervantes’ classic novel Don Quixote, reflecting their mission to defy conventional retail methods?
Kobe Bussan runs Gyomu Super stores that started as wholesale suppliers to small restaurants but have quietly become Japan's answer to Costco and Aldi. Nearly 90% of their customers are now regular shoppers hunting for bargains, not restaurant owners stocking up. Their secret weapon? Cut out the middleman everywhere possible. They make their own private-label products and import directly from overseas, skipping costly wholesalers and importers. This lets them offer dramatically lower prices than traditional Japanese supermarkets. Perfect timing too—while competitors struggle with aging owners and rising costs, Japanese consumers increasingly need affordable options as incomes stay flat. Gyomu Super delivers exactly that with their no-frills, low-price approach.
Kao owns the brands that fill Japanese kitchens, bathrooms and laundry rooms. Brands like Magiclean household cleaners or Attack laundry detergent are just a couple of the names they’ve turned into household icons. Their strength is a relentless focus on innovation, using advanced chemical technology to create products that are both effective and beloved. At home in Japan, Kao focuses on steady profits rather than growth—there's only so much detergent a shrinking population needs. But across Asia, they're expanding slowly as rising incomes create hungry markets for premium personal care products. It's a company that has proven its dedication to shareholders, with an impressive track record of consistently increasing dividends for 35 consecutive years.
Unicharm dominates Japan's personal care market with products for every life stage—baby diapers, feminine care, adult incontinence products, and pet supplies. Their chemical heritage gives them deep know-how in specialized materials that keeps them ahead with innovative products. At home, they own massive market shares across categories and are targeting growth in adult incontinence products and pet care as Japan's population ages. But the real growth story is happening across Asia's emerging middle class. Brands like Moony diapers and Sofy feminine care have become household names from China to Indonesia, Thailand to India. Unicharm perfectly bridges domestic dominance with global ambition—a preview of the worldwide Japanese success stories we'll explore next.
💡 Did you know that since 2011 Unicharm sells more adult diapers than baby diapers in Japan?
I Want It All
Iconic Japanese Brands: Pioneering Innovation and Global Recognition
When Queen released "I Want It All" in 1989, they captured an ambitious drive for complete success and global recognition. This perfectly embodies the mindset of Japan's leading consumer brands—companies that refused to settle for domestic success alone and set their sights on conquering global markets. Like Freddie Mercury's determined declaration, these Japanese brands wanted it all: not just local recognition, but worldwide respect for their quality, innovation, and cultural influence. From humble Japanese origins, they've systematically built global empires across fashion, entertainment, sports, and lifestyle sectors...
Fast Retailing, the company behind Uniqlo, perfectly exemplifies how Japanese brands go from local heroes to global players. They've cracked the code on "premium basics"—simple designs made with innovative fabrics like HeatTech thermal wear and AIRism innerwear, offering breathable comfort developed with advanced Japanese textile technology, all at reasonable prices that people genuinely want to wear daily. While Western fast-fashion chases fleeting trends, Uniqlo stocks timeless basics year-round, reducing fashion risk and creating steady revenue. The growth story is straightforward: methodical global expansion through new store openings, bringing Japanese clothing innovation to markets hungry for affordable quality basics.
💡 Did you know that Luxembourg finally got its first Uniqlo store in 2023?
Asics has found its stride again by staying true to what it does best—making runners run better. While competitors chase every sport imaginable, Asics doubled down on performance running shoes, building serious street credibility among runners through relentless R&D and biomechanics innovation. They're also reviving their cool factor with the retro Onitsuka Tiger brand, tapping into the premium sneaker craze. The timing couldn't be better—global health trends are driving more people to lace up and run, the sneaker culture is sweeping trough Gen Z, while rising incomes globally create new demand for their products. Asics proves that sometimes winning means picking your lane and keeping a clear focus, rather than trying to be everything to everyone.
💡 Did you know that ASICS is an acronym for the Latin expression "Anima Sana In Corpore Sano," which translates to "Healthy Soul In A Healthy Body”?
Asahi Group proves that sometimes a good investment strategy is just buying everyone’s favourite beer. As Japan’s largest brewer, they own Asahi Super Dry, which commands 50% of the Japanese market and flows through taps in countless bars nationwide. Through smart acquisitions, they’ve also collected a portfolio of strong international brands—Italy’s Peroni, Holland’s Grolsch, Czech Republic’s Pilsner Urquell, and Australia’s Great Northern Brewing. They’re market leaders across multiple countries, leveraging scale to keep costs competitive in this capital-heavy industry. Rather than chasing flashy growth, Asahi focuses on steady cash flows from premium brands that people genuinely prefer, delivering reliable returns to shareholders.
Kikkoman has turned humble soy sauce into a global empire. This little bottle with the red cap dominates kitchens worldwide—holding about a third of Japan's market and nearly two-thirds in America, where they've ruled since the 1980s. Their timing is perfect. Asian cuisines are exploding globally, creating demand for authentic soy sauce. Health-conscious consumers want natural ingredients, driving Kikkoman to innovate with organic, non-GMO, and low-sodium variants. Meanwhile, Southeast Asia's rising middle classes are boosting consumption as incomes grow. While competitors chase trends, Kikkoman sticks to what works: authentic brewing methods, quality ingredients, and patient fermentation over months. Sometimes the best global strategy is simply making something indispensable that everyone needs in their kitchen.
💡 Did you know that Kikkoman brews a special, premium soy sauce exclusively for the Japanese Imperial Household, which uses traditional methods and is aged for a full-year?
Nissin Foods isn’t just another food company — it invented instant noodles and gave the world the legendary Cup Noodles. They've turned quick meals into a global phenomenon, filling shelves from Tokyo to New York to Berlin. Back home in Japan, Nissin remains the undisputed king of instant noodles, and that home-market strength provides the cash that fuels its global expansion. What sets Nissin apart is not just its product innovation but also its playful, creative marketing that keeps it relevant with younger consumers. As busy lifestyles drive demand for quick meals — and as premium instant noodles gain traction — Nissin proves that even a humble bowl of noodles can be turned into a global powerhouse.
💡 Did you know that Japan sent instant ramen to space in 2005? Astronaut Soichi Noguchi enjoyed Nissin’s specially designed ‘Space Ram’ aboard the ISS.
Nintendo Nintendo has turned childhood nostalgia into a business empire. With the just-released Switch 2 following their wildly successful Switch console (over 150 million units sold), it continues to blend handheld and home gaming in one device. But Nintendo’s real magic lies in its characters: Mario, Zelda, Donkey Kong, and other timeless icons that generations have grown up with. While competitors chase the latest technology trends, Nintendo banks on something competitors can't replicate: emotional connections. Gaming platforms come and go, but beloved characters are forever. Parents who grew up with Mario now buy Nintendo consoles for their kids, creating an unbreakable cycle of loyalty that transcends hardware generations.
💡 Did you know that Mario, the world’s most famous video game character, made his debut in the 1981 arcade game Donkey Kong—and has since appeared in over 200 games?
Sony has transformed itself from the technology company that gave the world the Walkman into a global entertainment powerhouse. Today, they’re the company behind your PlayStation gaming experiences, the movie studio behind Men in Black and Spider-Man blockbusters, the music label owning rights to legends like Michael Jackson and Bruce Springsteen, and the producers of TV hits ranging from Breaking Bad to the globally franchised Who Wants to Be a Millionaire?. While their technology legacy still shows in innovations like iPhone camera sensors, the real story is how Sony leverages its diverse entertainment assets to dominate audiences worldwide. With global digital entertainment booming and emerging markets hungry for premium content, the company is perfectly positioned to capture this growth.
💡 Did you know that Sony created the PlayStation only after Nintendo humiliated them by publicly cancelling their partnership for a a Super Nintendo CD-ROM add-on in 1991?
Shimano has achieved something remarkable—invisible dominance in a product millions of people use daily. While bike brands get the spotlight, Shimano makes the components that actually matter—cassettes, brakes, shifters that determine how smoothly your ride goes. A Shimano drivetrain has become synonymous with reliability, making it the go-to choice for top cycling brands and consumers alike. Innovations like electronic shifting and ultra-lightweight materials keep them ahead, while massive production scale lets them serve everyone from weekend warriors to Tour de France pros with quality components at every price point. With urbanization driving bike commuting, emerging markets embracing cycling, and health trends boosting demand globally, Shimano sits perfectly positioned as the invisible force powering the world's growing love affair with bicycles.
💡 Did you know that in the 2025 edition of the Tour de France, 17 out of 23 teams were riding bicycles equipped with Shimano Dura-Ace Di2 groupsets?
Shoei is the king of ultra-premium motorcycle helmets, holding more than half of the global high-end market by obsessing over something that can’t fail—protecting riders’ heads. Their helmets represent the very top tier of safety gear, trusted by professional racers and discerning motorcyclists who understand that when your life depends on it, you don’t compromise. What sets them apart is their legendary quality control: after each production stage, helmets are personally inspected and stamped with the checker’s name. On top of that, Shoei offers unique personal fitting systems that enhance both safety and comfort. They’re positioned perfectly for two growth trends: global motorcycle demand rising steadily, and riders with growing incomes in emerging markets upgrading their safety equipment.
💡 Did you know that Marc Marquez, seven-time Moto GP Champion and 2025 title winner, races wearing the Shoei X-SPR Pro helmet?
Your Investment Soundtrack
After exploring all eight tracks of your investment soundtrack, a remarkable picture emerges of Japanese corporate excellence. The portfolio currently spans 50 companies with strong long-term prospects, representing decades - and in many cases more than a century - of business resilience. These aren’t flashy start-ups or speculative ventures - they’re established businesses built to last.
The stability is striking: most companies carry little to no debt, only 9 are younger than 50 years old, and an impressive 16 have been operating for more than a century. This proven ability to adapt, survive, and thrive through multiple economic cycles, technological shifts, and global disruptions is exactly what makes them attractive long-term holdings.
Of course, a great company doesn’t automatically make a great investment—valuation matters, and circumstances change. This portfolio represents current positions, actively managed to ensure they remain attractive investments. Holdings are sold when valuations become stretched, competitive threats emerge, or investment theses weaken—and sometimes repurchased when prices become attractive again or the company’s outlook improves again. Yet the long-term focus is evident: Thirteen of these positions have been held in the portfolio for more than ten years in total and another sixteen for more than five years.
From healthcare companies benefiting from aging demographics to automation leaders solving labour shortages, from digital transformation enablers to niche market dominators, from domestic consumer champions to globally recognized brands—each holding represents a carefully selected piece of Japan’s economic evolution. These are ownership stakes in companies that combine traditional Japanese values of quality and craftsmanship with innovative responses to modern challenges.
This disciplined approach to building and managing a collection of enduring businesses creates a portfolio designed not just for today’s markets, but for the demographic and technological shifts reshaping our world over the coming decades.
The Complete Setlist
Volume 1: Demographic Shift: Healthcare Innovation and Automation
Volume 2: Infrastructure Spending and the Energy Transition
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Written by Steve Glod, Fund Manager
BLI - Banque de Luxembourg Investments, an asset management company approved by the Luxembourg Financial Sector Supervisory Commission (CSSF)
Final date of writing: 26 November 2025.
Publication date: 27 November 2025
The companies mentioned in this article are all held in the BL Equities Japan Fund managed by the author at the time of writing. As the Fund is actively managed, its composition is subject to change over time; the companies mentioned in this article may leave the portfolio depending on subsequent investment decisions made by the manager.
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